Principal Financial Group Inc. Decreases Stake in Bank of America Corporation $BAC

Key Points

• Principal Financial Group cut its stake in Bank of America by 4.1% in Q4, selling 601,774 shares and leaving it with 13,928,599 shares worth about $766 million (≈0.19% of BAC).
• Bank of America beat quarterly estimates, reporting $1.11 EPS vs. $1.00 expected and $30.27B in revenue, and announced a $0.28 quarterly dividend ($1.12 annual, ~2.1% yield).
• Analysts maintain a consensus "Moderate Buy" (22 Buys, 5 Holds) with an average price target of $61.02, while the stock trades near $52.24 with a P/E of ~12.9 and a market cap of about $373 billion.

Principal Financial Group Inc. decreased its holdings in shares of Bank of America Corporation (NYSE:BAC) by 4.1% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 13,928,599 shares of the financial services provider's stock after selling 601,774 shares during the quarter. Principal Financial Group Inc. owned approximately 0.19% of Bank of America worth $766,073,000 at the end of the most recent quarter.

Several other institutional investors have also recently added to or reduced their stakes in BAC. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Bank of America by 640.5% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 46,516,728 shares of the financial services provider's stock worth $2,399,798,000 after buying an additional 40,235,201 shares during the last quarter. Vanguard Group Inc. lifted its position in shares of Bank of America by 3.7% during the 4th quarter. Vanguard Group Inc. now owns 651,076,825 shares of the financial services provider's stock worth $35,809,225,000 after buying an additional 23,351,183 shares during the last quarter. Capital World Investors lifted its position in shares of Bank of America by 11.0% during the 3rd quarter. Capital World Investors now owns 144,371,118 shares of the financial services provider's stock worth $7,448,816,000 after buying an additional 14,275,810 shares during the last quarter. Danske Bank A S purchased a new stake in shares of Bank of America during the 3rd quarter worth approximately $224,863,000. Finally, Capitolis Liquid Global Markets LLC lifted its position in shares of Bank of America by 52.0% during the 3rd quarter. Capitolis Liquid Global Markets LLC now owns 12,496,236 shares of the financial services provider's stock worth $644,681,000 after buying an additional 4,273,472 shares during the last quarter. Hedge funds and other institutional investors own 70.71% of the company's stock.

Analyst Ratings Changes

Several analysts have recently weighed in on BAC shares. HSBC boosted their price objective on shares of Bank of America from $55.00 to $60.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Morgan Stanley reduced their price objective on shares of Bank of America from $67.00 to $61.00 and set an "overweight" rating for the company in a research report on Tuesday, March 31st. Daiwa Securities Group boosted their price objective on shares of Bank of America from $58.00 to $61.00 and gave the stock an "overweight" rating in a research report on Tuesday, April 28th. Jefferies Financial Group boosted their price objective on shares of Bank of America from $60.00 to $65.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Finally, Wolfe Research lowered Bank of America from an "outperform" rating to a "peer perform" rating in a research report on Wednesday, January 7th. Twenty-two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $61.02.

Bank of America Trading Down 1.9%

BAC opened at $52.24 on Tuesday. The firm has a market cap of $373.27 billion, a price-to-earnings ratio of 12.93, a price-to-earnings-growth ratio of 0.90 and a beta of 1.21. Bank of America Corporation has a 52 week low of $40.56 and a 52 week high of $57.55. The business's 50 day moving average is $50.34 and its two-hundred day moving average is $52.47. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.18.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings results on Wednesday, April 15th. The financial services provider reported $1.11 EPS for the quarter, topping the consensus estimate of $1.00 by $0.11. The company had revenue of $30.27 billion for the quarter, compared to analyst estimates of $29.72 billion. Bank of America had a return on equity of 11.49% and a net margin of 16.78%.The firm's revenue was up 10.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.90 earnings per share. On average, research analysts predict that Bank of America Corporation will post 4.46 EPS for the current year.

Bank of America Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Friday, June 5th will be issued a $0.28 dividend. The ex-dividend date of this dividend is Friday, June 5th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.1%. Bank of America's payout ratio is presently 27.72%.

Bank of America News Roundup

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Bank of America strategist Michael Hartnett argues the U.S. is in a nominal “boom loop,” forecasting stronger GDP growth — a macro backdrop that would support loan growth, fee income and credit performance for large banks like BAC. Bank of America drops stunning take on the economy
• Positive Sentiment: BofA research notes U.S. midterms could push the Administration toward less aggressive tariffs — a reduction in trade friction would be constructive for corporate profits and markets, indirectly supportive of BAC’s trading and corporate banking franchise. The midterms could lead to less aggressive tariffs, BofA says
• Positive Sentiment: BofA’s investment-banking platform is active: Teva will present at the BofA Securities Health Care Conference, reflecting dealflow and event-based fee opportunities for the bank. Teva to Present at the BofA Securities Health Care Conference
• Neutral Sentiment: BAC recently reaffirmed its 2025 risk profile with no material changes disclosed — a sign of stability but not a catalyst. Bank of America Reaffirms 2025 Risk Profile
• Neutral Sentiment: UBS/Bloomberg market commentary highlights two‑sided tail risks (AI-led rallies vs. energy-driven drag) — relevant market context but not bank-specific. Traders Grapple With Two-Sided Tail Risk as Stocks Regain Highs
• Neutral Sentiment: Regulatory disclosure from Belgium: Bank of America’s direct voting interest in Umicore fell just below the 3% threshold — a routine portfolio disclosure with limited impact on BAC itself. Umicore - Transparency notification by Bank of America Corporation
• Negative Sentiment: Treasury Secretary Bessent warns of AI-powered bank account hacks — rising cyberthreat concerns could mean higher security spending and operational risk for banks, a potential negative catalyst. Bessent Warns of Threat of AI-Powered Bank Account Hacks
• Negative Sentiment: Chicago Fed’s Austan Goolsbee called recent inflation data “bad news” and urged caution on cuts — the risk of a later-than-expected easing cycle increases macro uncertainty and can weigh on bank trading revenue and investor sentiment. Fed’s Goolsbee labels recent inflation data “bad news,” urges caution

Insider Activity

In other news, insider Thomas M. Scrivener sold 50,000 shares of the business's stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $49.82, for a total value of $2,491,000.00. Following the transaction, the insider owned 227,973 shares of the company's stock, valued at approximately $11,357,614.86. The trade was a 17.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider James P. Demare sold 83,832 shares of the business's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $50.00, for a total value of $4,191,600.00. Following the completion of the transaction, the insider directly owned 307,240 shares in the company, valued at approximately $15,362,000. The trade was a 21.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 227,832 shares of company stock valued at $11,094,960. Company insiders own 0.27% of the company's stock.

Bank of America Profile

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.

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